“The rhetoric from certain government sections about securing jobs in the UK will have been a hurdle and certainly put off AstraZeneca shareholders.”

Recent price moves have left AstraZeneca trading at a forward price/EPS multiple of 19.5, according to StarMine data, compared to 15.5 for GlaxoSmithKline (Other OTC: GLAXF – news) and 14.3 for Sanofi (NasdaqGM: GCVRZ – news) , and over double its 10-year median of 9.3.

The FTSE 100 retraced the previous week’s 0.6 percent gain, which saw the index touch 14-year highs. On Thursday it came within 0.8 percent of all-time highs set in December 1999.

“With the FTSE 100 close to all-time-high territory, concerns have once again been raised in relation to valuation, which is creating something of a headwind,” said Jeremy Batstone-Carr, analyst at Charles Stanley (LSE: CAY.L – news) .

In common with AstraZeneca, the broader market is also trading above long-run average valuations. The FTSE 100 trades at a price to earnings ratio of 13.8, compared to a 10-year average of 11.8, Thomson Reuters Datastream showed.

EasyJet was among the top risers after expectation-beating results from Irish peer Ryanair.

EasyJet had succumbed to profit taking in recent sessions – down 10 percent last week – as investors cashed in profits on a powerful rally seen over the last 12 months. Its shares rose 1.3 percent on Monday. (Editing by Toby Chopra)

UK PRE MARKET The FTSE 100 Futures are trading at 7,428.80 with a loss of -0.11% percent or -8.40 point. The...

Rules of Discussion on AstraZeneca pegs back Britain's FTSE after takeover snub

1. This forum is for discussion of financial markets. Please respect others view even if they are contrary to you.
2. Member's comments should lead to value addition in forum discussion.
3. If anyone is found making repetitive Explicit/Abusive/Racial comments, his account shall be banned and old posts will be deleted.
4. Providing Advice/Recommendations/Tips is fine but it should be free. Members cannot ask to be paid for it. Paid Advice is stricly prohibited
5. Spam links are not allowed. Too much promotion or using Contact info in ID will lead to account ban.
IMP : Memebrs are requeuested to flag any violations to keep Forum Clean